Bitcoin (BTC) Price Prediction: BTC/USD Drops Sharply and Pulls Back as Bitcoin Retests $50K

After its rejection at the $50,000 overhead resistance, Bitcoin fluctuates between $48,000 and $49,000 price levels as Bitcoin retests $50K. In the first instance, BTCs price dropped sharply to the low of $48,200. Later it pulled back above $49,000. The bears would have sunk Bitcoin if it has broken below $48,000 support.

Resistance Levels: $50,000, $51,000, $52,000

Support Levels: $40,000, $39,000, $38,000

In todays candlestick, BTC price plunged to $48,200 support and then pulled back. The pullback was above the $49,000 high. The candlestick is done with a small body and a long tail. The long candlestick tail describes that there is strong buying pressure above the $48,000 support. On the upside, the retest at the $50,000 high will continue as long as the $48,000 support holds. Besides, the bullish runs will continue if the BTC price closes above the $50,000 psychological price level. Besides, further rejection at the $50,000 high will cause Bitcoin to fall to the breakout level of $42,000 price level. Meanwhile, the RSI period 14 is at level 60. It indicates Bitcoin has room to rally on the upside. Bitcoin is trading at $49,440 at the time of writing.

Bitcoin (BTC) Indicator Reading

BTC/USD is above the 80% range of the daily Stochastic. It indicates that the crypto is trading in the overbought region. This implies that the bullish momentum is likely to subside. In other words, sellers are likely to emerge in the overbought region to push prices down. Meanwhile, in a strong trending market, the overbought condition may not hold. Bitcoin will continue to rise on the upside.